The stock purchases began in December 2008, less than two months after discussions kicked off about the corporate acquisition of a California medical products manufacturer.
By the time the deal was announced on Jan. 12, 2009, former Orioles third baseman Doug DeCinces had bought 83,700 shares in the company, Advanced Medical Optics Inc. The stock's value soared 143 percent on news of the $2.8 billion acquisition, and DeCinces quickly sold his shares for a profit of $1,282,691.
Securities and Exchange Commission court filings lay out a detailed timeline of the personal connections that led to insider trading accusations against DeCinces and the three others. And now another former Oriole — Hall of Famer Eddie Murray — has been linked to the ongoing probe, part of a sprawling New York investigation that has produced charges against dozens of Wall Street traders and consultants.
Murray has not been charged with a crime, and his name does not appear in the SEC court filing against DeCinces or in other documents related to the investigation. A 2010 report from the Los Angeles Daily Journal said Murray was one of several investors believed to have been tipped off by DeCinces, but he was not among the three associates targeted in the 2011 SEC suit. This week, a Reuters report said Murray remains a subject of the probe.
Murray's lawyer has downplayed the matter as "old news," and the nature of his alleged involvement remains unclear.
DeCinces paid $2.5 million last year to settle the civil case without acknowledging guilt. His three associates, who include the president of a Sparks-based banking supply company, also agreed to settlements totaling $830,000.
A voicemail message at DeCinces' Irvine, Calif., development company said he is out of the office until July 3. An associate in his office did not respond to a request for comment, nor did Rick Firestone, the Washington-based attorney who defended the former Oriole.
Attempts to reach Murray through Diane Hock, a lawyer who represents him in marketing ventures, were unsuccessful.
Speaking about the DeCinces case, a top SEC enforcement official said there's always a puzzling element to insider-trading allegations involving public figures.
"It's hard to understand why reputable people, especially those with money, put their reputations at stake," said Daniel M. Hawke, chief of the agency's market abuse division.
Other prominent people who have faced insider trading charges include Martha Stewart, who served five months in prison for obstructing an investigation of her stock activities, and 1980s junk-bond innovator Michael Milken, who paid more than $1 billion to settle several cases.
Last year, hedge-fund billionaire Raj Rajaratnam was sentenced to 11 years in prison for insider trading as a result of the same investigation that spawned the DeCinces case. A California attorney, Dean Goetz, agreed to pay $23,000 last year to settle charges that he traded on inside information about Advanced Medical Optics.
Hawke said he could not comment on the report involving Murray and could only say an investigation is continuing, as noted in a 2011 release announcing the settlement with DeCinces.
SEC civil cases are generally based on circumstantial evidence, so there is often a gray area in determining how a stock trader acquired and used information, the agency says. Many cases fail to move forward because investigators lack specific evidence linking trades to insider information, even if the trades seem suspicious.
Abba Poliakoff, an attorney at Gordon Feinblatt with expertise in securities law, said the key is establishing that an investor knowingly trades on the basis of nonpublic information.
"In all the cases you read about, there's usually a well-established trail you can follow that shows the person knew it was an inside tip," Poliakoff said.
Casual stock advice between friends is not enough to run afoul of the law, he said.
As unclear as Murray's reported link remains, SEC court filings lay out DeCinces' alleged actions in precise detail.
Trail of stock deals led to DeCinces insider trading accusation
Link to ex-Oriole teammate Murray remains unclear
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